Slide 1: Earnings Conference Call First Quarter 2020
Earnings Conference Call First Quarter 2020 April 22, 2020
Slide 2: Cautionary Statements And Risk Factors That May Affect Future Results
Cautionary Statements And Risk Factors That May Affect Future Results These presentations include forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from such forward-looking statements. The factors that could cause actual results to
Slide 3: NextEra Energy is focused on delivering on its commitments during this challenging time
NextEra Energy is focused on delivering on its commitments during this challenging time NextEra Energy Opening Remarks • Safety of our employees and the community remains our number one priority • We are committed to doing the right thing – FPL and Gulf Power suspended disconnects and customers will
Slide 4: NextEra Energy's strategic focus remains unchanged
NextEra Energy’s strategic focus remains unchanged NextEra Energy Strategic Focus • FPL and Gulf Power remain focused on delivering outstanding customer value – Value of FPL’s smart capital investments has never been more clear – Ongoing capital investment program at both companies remains on track
Slide 5: NextEra Energy Partners remains well-positioned to execute on its long-term strategic objectives
NextEra Energy Partners remains well-positioned to execute on its long-term strategic objectives NextEra Energy Partners Opening Remarks • As a result of the actions taken in 2019, NEP entered 2020 particularly well-positioned • NEP maintains significant liquidity to achieve its objectives – Net liq
Slide 6: FPL's earnings per share increased 9 cents from the prior-year comparable quarter
FPL’s earnings per share increased 9 cents from the prior- year comparable quarter Florida Power & Light Results – First Quarter Net Income EPS ($ MM) $642 $1.31 $588 $1.22 2019 2020 2019 2020 6
Slide 7: Continued investment in the business was the primary driver of growth at FPL
Continued investment in the business was the primary driver of growth at FPL Florida Power & Light EPS Contribution Drivers EPS Growth Regulatory Capital Employed(1) (Excluding Accumulated Deferred Income Taxes) First Quarter $B FPL – 2019 EPS $1.22 40.0 $38.8 $35.5 Drivers: 35.0 New investments $0.
Slide 8: FPL continues to identify smart capital investments
FPL continues to identify smart capital investments to further enhance its already best-in-class customer value proposition FPL Development Highlights • Recently filed Ten Year Site Plan reflects FPL and Gulf Power beginning to operate as an integrated electric system in 2022 – Expect to take steps
Slide 9: Gulf Power's net income increased more than 8% year-over-year
Gulf Power’s net income increased more than 8% year-over- year Gulf Power Results – First Quarter Net Income Regulatory Capital Employed(1) ($ MM) (Excluding Accumulated Deferred Income Taxes) $40 $B $37 4.0 $3.9 $3.1 3.0 2.0 1.0 0.0 2019 2020 Q1 2019(2) Q1 2020 Retail Rate Base Other EPS EPS Growth
Slide 10: The Florida economy is beginning to reflect the impacts of the COVID-19 pandemic
The Florida economy is beginning to reflect the impacts of the COVID-19 pandemic Florida Economy Florida Unemployment & Labor Participation Rates(1) Florida Consumer Sentiment(2) 12% 63% 110 10% 100 Labor 62% Participation 8% Rate 90 (Right Axis) 61% 6% 80 60% 4% 70 2% 59% 60 0% 58% 50 1/10 1/11 1/1
Slide 11: FPL and Gulf Power had strong customer growth
FPL and Gulf Power had strong customer growth Customer Characteristics FPL Retail kWh Sales FPL Growth(1,2) (Change vs. prior-year period) (Change vs. prior-year quarter) 72.3 100 First Vero Impact 80 Quarter # of 60 UKU Impact Customer Growth & Mix 1.2% Customers (000’s) 40 + Usage Change Due to We
Slide 12: Energy Resources' adjusted EPS increased ~11% from the prior-year comparable quarter
Energy Resources’ adjusted EPS increased ~11% from the prior-year comparable quarter Energy Resources Results(1) – First Quarter GAAP Adjusted Net Income EPS Net Income EPS ($ MM) ($ MM) $529 $1.08 $321 $318 $0.67 $0.65 $467 $0.97 2019 2020 2019 2020 2019 2020 2019 2020 1) Attributable to NEE; prior
Slide 13: Energy Resources' growth was driven by new investments and existing generation assets
Energy Resources’ growth was driven by contributions from new investments and existing generation assets Energy Resources First Quarter Adjusted EPS(1) Contribution Drivers $1.40 $1.20 $0.02 ($0.02) $0.04 ($0.10) $0.09 $0.08 $1.08 $1.00 $0.97 $0.80 $0.60 $0.40 $0.20 $0.00 Q1 2019 New Existing Gas Cu
Slide 14: Energy Resources had another strong quarter of origination success
Energy Resources had another strong quarter of origination success Energy Resources Development Program(1) • 1,590 MW added to backlog – 600 MW of wind for 2022 and beyond – 420 MW of solar – 457 MW of battery storage, almost all of which will be added to existing solar sites – 113 MW of wind repowe
Slide 15: NextEra Energy's adjusted earnings per share increased ~8% versus the prior-year comparable quarter
NextEra Energy’s adjusted earnings per share increased ~8% versus the prior-year comparable quarter NextEra Energy EPS Summary(1) – First Quarter GAAP 2019 2020 Change FPL $1.22 $1.31 $0.09 Gulf Power $0.08 $0.08 $0.00 Energy Resources $0.67 $0.65 ($0.02) Corporate and Other ($0.56) ($1.18) ($0.62)
Slide 16: We remain well positioned to continue our strong adjusted EPS growth
We remain well positioned to continue our strong adjusted EPS growth NextEra Energy’s Adjusted Earnings Per Share Expectations • Expect 6% - 8% growth $10.00 - through 2021 off our 2018 base $9.40 - $10.75 of $7.70, plus the expected $8.70 - $9.95 accretion from the Florida $9.20 acquisitions of $0.
Slide 17: NEP's strong year-over-year growth was driven by new and existing projects
NEP’s strong year-over-year growth was driven by contributions from new and existing projects NextEra Energy Partners – First Quarter Drivers(1) Adjusted EBITDA CAFD ($ MM) ($ MM) $350 $180 $20 ($4) ($1) $294 $160 $72 ($4) ($25) $300 $54 $140 $130 $5 $135 $250 $225 $120 $200 $100 $44 $150 $80 $60 $1
Slide 18: NextEra Energy Partners entered 2020 well-positioned to achieve its growth objectives
NextEra Energy Partners entered 2020 well-positioned to achieve its growth objectives NextEra Energy Partners Financial Strength • During 2019, NEP raised ~$1.8 B through three convertible equity portfolio financings (CEPFs) – CEPFs expected to reduce asset and financing needs to achieve the same le
Slide 19: NEP does not expect to need any acquisitions until 2022
NEP does not expect to need any acquisitions until 2022 to achieve its targeted distribution growth expectations NextEra Energy Partners Adjusted EBITDA and CAFD Expectations Adjusted CAFD(3) CAFD EBITDA(2) (Including (Excluding Desert PG&E-Related) Sunlight CAFD) 12/31/20 Run Rate(1) $1,225 – $1,40
Slide 20: Q&A Session
Qé&A Session NExTera’ NexTera energy” ENERGY & PARTNERS Z 20
Slide 21: Appendix
Appendix NExTera’ NexTera energy” ENERGY & PARTNERS Z 21
Slide 22: NextEra Energy
NEXT@ra ENERGY &%
Slide 23: NextEra Energy has implemented its Pandemic Plan and is continuing to safely deliver
NextEra Energy has implemented its Pandemic Plan and is continuing to safely deliver on its commitments COVID-19 Pandemic Response Active Pandemic Planning and Employees Customers Community Execution • Leveraging extensive • Established • Continuing to provide • NextEra Energy experience in temperat
Slide 24: Recent declines in underlying usage at FPL and Gulf Power have been more than offset by strong weather
Recent declines in underlying usage at FPL and Gulf Power have been more than offset by strong weather Weekly Usage Variance vs. Prior Two Year Average FPL Gulf Power 20.3% 14.5% 12.0% 12.6% 9.5% 9.6% 6.5% 2.9% 3.8% 1.8% 2.3% 1.8% (1.2%) (1.7%) (2.5%) (2.3%) (2.7%) (3.2%) (5.2%) (6.8%) (7.2%) (8.7%)
Slide 25: NextEra Energy is well-positioned to withstand potential changes in load from the COVID-19 pandemic
NextEra Energy is well-positioned to withstand potential changes in load from the COVID-19 pandemic Sales & Usage Sensitivities Commentary Retail Sales Composition(1) Impact of 1% Change in Sales(1) • Reserve amortization provides flexibility to offset changes in usage kWh Revenues Revenues ($ MM) E
Slide 26: NextEra Energy maintains its strong liquidity position
NextEra Energy maintains its strong liquidity position NextEra Energy’s Liquidity Position Liquidity as of 3/31/2020 • Largest core credit facility, with ($ B) most credit providers in the $11.7 ($1.5) $3.3 $11.9 industry(2) – Core FPL, Gulf and NEECH credit $10.2 ($1.6) facilities mature February 2
Slide 27: NextEra Energy's credit metrics remain on track
NextEra Energy’s credit metrics remain on track Credit Metrics A- Downgrade Actual Target S&P Range Threshold 2019(1) 2020 FFO/Debt 13%-23% 21% 22.8% >21% Debt/EBITDA 3.5x-4.5x 3.6x <4.5x Baa Downgrade Actual Target Moody’s Range Threshold 2019(1) 2020 CFO Pre-WC/Debt 13%-22% 18% 19.9% >18% CFO-Div/
Slide 28: NextEra Energy is a leader amongst its peers in many key financial metrics
NextEra Energy is a leader amongst its peers in many key financial metrics, including S&P’s FFO-to-Debt Ratio 2019 FFO-to-Debt(1) 25% 20% 15% 23% 10% 21% 19% 17% 16% 16% 15% 15% 15% 14% 14% 14% 13% 5% 11% 0% NEE A B C D E F G H I J K L M (A-) (BBB+) (BBB+) (A-) (A-) (BBB+) (A-) (BBB+) (A-) (A) (A-)
Slide 29: We remain committed to preserving our strong credit position
We remain committed to preserving our strong credit position, which is one of the highest among large, rate- regulated electric utility holding companies NextEra Energy Ratings(1) S&P Moody’s Fitch NextEra Energy Issuer Credit Rating A- Baa1 A- Florida Power & Light Issuer Credit Rating A(2) A1 A Fi
Slide 30: FPL and Gulf Power are rated higher than all but four of the 148 S&P-rated utility OpCos
FPL and Gulf Power are rated higher than all but four of the 148 S&P-rated U.S. Electric Utility OpCos; no publicly- traded HoldCo is rated higher than NextEra Energy U.S. Electric Utility OpCo and HoldCo Credit Ratings(1) 80 70 60 50 Number of Entities FPL 40 & Gulf 30 Power NEE 20 10 0 AAA AA+ AA
Slide 31: NextEra Energy's credit rating ranks within the top third of all S&P 500 Companies
NextEra Energy’s credit rating ranks within the top third of all S&P 500 Companies S&P 500 Constituents’ Credit Ratings(1) 100 90 80 70 Number 60 of Entities 50 40 30 20 10 0 AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B Not Rated 1) Source: S&P Global Ratings; Foreign Currency Long-Term Issu
Slide 32: Potential drivers of variability to consolidated adjusted EPS
Potential drivers of variability to consolidated adjusted EPS Balance of 2020 Potential Sources of Variability(1) Florida Power & Light • Wholesale (primarily volume)(2) ± $0.02 - $0.03 • Timing of investment(3) ± $0.03 - $0.04 NextEra Energy Resources • Natural gas prices (± $1/MMBtu change) ± $0.0
Slide 33: NextEra Energy Resources Projected 2020 Portfolio Financial Information
NextEra Energy Resources Projected 2020 Portfolio Financial Information(1) (includes NEER's share of NEP assets) Value of pre-tax tax Maintenance Adjusted credits included in Capital and Pre-Tax Cash Remaining (2) (3) EBITDA adjusted EBITDA Debt Service(4) Other (5) Flows (6) Contract Life (7) NEER
Slide 34: Energy Resources Wind Production Index
Energy Resources Wind Production Index(1)(2) 2019 2020 1ST QTR 2ND QTR 3RD QTR 4TH QTR 1ST QTR Location MW Jan Feb Mar QTR MW QTR MW QTR MW QTR YTD MW Jan Feb Mar QTR Midwest 3,847 91% 89% 98% 93% 3,744 91% 3,742 96% 3,741 100% 95% 3,844 86% 99% 96% 93% West 3,286 86% 92% 79% 85% 3,286 94% 3,286 107
Slide 35: Contracted Wind and Solar Development Program
Contracted Wind and Solar Development Program(1) Wind Location MW Solar Location MW Solar Location MW 2019: 2019: Post – 2022: Emmons-Logan ND 216 Quitman GA 150 Proxima CA 50 Crowned Ridge I SD 200 Shaw Creek SC 75 Skeleton Creek OK 250 Blue Summit III TX 201 Dougherty GA 120 Chariot NH 50 Sholes N
Slide 36: Energy Storage Development Program
Energy Storage Development Program(1) Project Location MW Duration Project Location MW Duration 2019: Post – 2022: Montauk NY 5 8.0 Proxima CA 5 4.0 Minuteman MA 5 2.0 Alabama Power AL 240 2.0 Total 2019: 10 Sonoran AZ 250 4.0 2020: Storey AZ 88 3.0 Rush Springs OK 10 2.0 CT DEEP CT 3 5.0 Distribute
Slide 37: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ millions, after-tax) 1) Includes NextEra Energy’s share of contracts at consolidated projects and equity method investees 2) Balance disposed of upon sale of ownership interest in the Spain solar facilities 37
Slide 38: Non-Qualifying Hedges – Summary of Activity
Non-Qualifying Hedges(1) – Summary of Activity ($ millions) 1st Quarter Asset / Asset / (Liability) Change in Total (Liability) Balance Amounts Forward NQH Gain / Balance Description 12/31/19 (2) Realized Prices (Loss) Other (4) 3/31/20 Pretax gross amounts Electricity related positions $ 779 $ 3 $
Slide 39: Non-Qualifying Hedges – Summary of Forward Maturity
Non-Qualifying Hedges – Summary of Forward Maturity ($ millions) (1) Gain / (Loss) Asset / (Liability) Balance Total Description 3/31/20 2020 2021 2022 2023 2024 - 2047 2020 - 2047 (1) Pretax gross amounts Electricity related positions $ 873 $ (65) $ (144) $ (147) $ (84) $ (433) $ (873) Gas Infrastr
Slide 40: Reconciliation of GAAP Net Income to Adjusted Earnings (Q1 2020)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended March 31, 2020) Florida Power Gulf Energy Corporate & NextEra Energy, (millions, except per share amounts) & Light Power Resources Other Inc. Net Income (Loss) Attributable to NextEra Ener
Slide 41: Reconciliation of GAAP Net Income to Adjusted Earnings (Q1 2019)
Reconciliation of GAAP Net Income to Adjusted Earnings Attributable to NextEra Energy, Inc. (Three Months Ended March 31, 2019) Florida Power Gulf Energy Corporate & NextEra Energy, (millions, except per share amounts) & Light Power Resources Other Inc. Net Income (Loss) Attributable to NextEra Ener
Slide 42: Definitional information
Definitional information NextEra Energy, Inc. Adjusted Earnings Expectations This presentation refers to adjusted earnings per share expectations. Adjusted earnings expectations exclude the cumulative effect of adopting new accounting standards, the effects of non-qualifying hedges and unrealized ga
Slide 43: Cautionary Statement And Risk Factors That May Affect Future Results
Cautionary Statement And Risk Factors That May Affect Future Results This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, bu
Slide 44: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) effect of reductions in the liquidity of energy markets on NextEra Energy's ability to manage operational risks; effectiveness of NextEra Energy's risk management tools associated with its hedging and trading procedures to
Slide 45: NextEra Energy Partners
NExTera energy’ PARTNERS Z
Slide 46: Reconciliation of Net Loss to Adjusted EBITDA and CAFD
Reconciliation of Net Loss to Adjusted EBITDA and Cash Available for Distribution (CAFD) (millions) Q1 2020 Q1 2019 Net loss $ (720) $ (121) Add back: Depreciation and amortization 66 61 Interest expense 839 155 Income taxes (75) (7) Tax credits 120 108 Amortization of intangible assets - PPAs 26 9
Slide 47: NEP Wind Production Index
NEP Wind Production Index(1)(2) A 1% change in the wind production index equates to $7 - $9 MM of adjusted EBITDA for the balance of 2020 1) Represents a measure of the actual wind speeds available for energy production for the stated period relative to long-term average wind speeds; the numerator i
Slide 48: NEP's strong liquidity position provides flexibility
NEP’s strong liquidity position provides flexibility in executing its long-term growth objectives NextEra Energy Partners’ Liquidity Position Liquidity as of 3/31/2020 ($ MM) • $1.25 B revolving credit facility $1,250 ($550) matures in February 2025 – 26 banks participating • $300 MM convertible deb
Slide 49: NEP's credit metrics remain on track
NEP’s credit metrics remain on track Credit Metrics BB Downgrade Actual Target (1) S&P Range Threshold 2019(4) YE 2020 (4) HoldCo Debt/EBITDA 4.0x - 5.0x 5.25x 5.1x 4.0x - 5.0x Ba1 Downgrade Actual Target (2) Moody's Range Threshold 2019(4) YE 2020 (4) Total Consolidated Debt/EBITDA <7.0x >7.0x 6.1x
Slide 50: Expected Cash Available for Distribution
Expected Cash Available for Distribution(1) (December 31, 2020 Run Rate CAFD; $ MM) $1,370-$1,540 ($20-$30) ($110-$120) $1,225-$1,400 ($165-$215) ($430-$510) ($40-$45) ($5-$15) $560-$640 ($55-$59) $505-$585 Project-Level Corporate IDR Fees Adjusted Debt Pre-Tax Tax Non-Cash Maintenance Estimated Des
Slide 51: Definitional information
Definitional information NextEra Energy Partners, LP. Adjusted EBITDA and CAFD Expectations This presentation refers to adjusted EBITDA and CAFD expectations. NEP’s adjusted EBITDA expectations represent projected (a) revenue less (b) fuel expense, less (c) project operating expenses, less (d) corpo
Slide 52: Cautionary Statement And Risk Factors That May Affect Future Results
Cautionary Statement And Risk Factors That May Affect Future Results This presentation contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are not statements of historical facts, but instead represent the current expectations of NextEra
Slide 53: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) PG&E, which contributes a significant portion of NEP's revenues, filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Any rejection by PG&E of a material portion of NEP's PPAs with it
Slide 54: Cautionary Statement And Risk Factors That May Affect Future Results (cont.)
Cautionary Statement And Risk Factors That May Affect Future Results (cont.) NEP's ability to make distributions to its unitholders depends on the ability of NEP OpCo to make cash distributions to its limited partners; If NEP incurs material tax liabilities, NEP's distributions to its unitholders ma